Funtastic, the toy wholesaler backed by billionaires Gerry Harvey and Lachlan Murdoch, has slumped to an all-time low despite assurances it does not expect to breach its financial covenants again and a forecast it will return to profit this half.

Three years after outlaying $1.2 billion to acquire accounting software developer MYOB, Bain Capital, is seeking to float the company in a move which will value it at up to $2.7 billion, including debt.

Regional banks say there is no reason for the banking regulator to delay raising the capital levels of the big banks to ensure consistency with global bank capital rules which could take years to complete.